Gold prices high on April 18 in the global markets to their peak levels since mid-March, as the Russia-Ukraine crisis soured risk sentiment and drove investors to the safe-haven bullion. Gold futures on MCX jumped 0.73% or Rs 286 to Rs 53,378 per 10 grams. Silver futures also jumped 1.31% or Rs 901 at Rs 69,933 per kg.
Rapid interest rate hikes and balance sheet reductions, along with high inflation, are alarming. As a result, the world economy and the United States may be harmed, prompting a spike in US bond yields and the dollar index, as well as precious metals.
Gold as a safe haven are attractive due to soaring inflation and uncertainty in the Russian-Ukraine war, said Ravi Singh, Vice President and Head of Research, ShareIndia. “As long as the two factors continue to dominate markets for sentiment – a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips,” Ravi Singh added.
Trading strategy
“At MCX, gold has support at Rs 52770-52550 levels and resistance at Rs 53180-53440 levels, while silver has support at Rs 68550-68100 levels and resistance at Rs 69440-70000 levels. We suggest buying gold on dips around Rs 52770 with a stop loss of Rs 52550 on a closing basis for target of Rs 53200 and silver around Rs 68550 with a stop loss of Rs 67900 for target of Rs 70000,” Manoj Kumar Jain, Prithvi Finmart Commodity Research.
